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Investing.com - Stifel lowered its price target on TransDigm Group (NYSE:TDG) to $1,650 from $1,710 while maintaining a Buy rating on the aerospace components manufacturer. The stock currently trades at $1,308, with analyst targets ranging from $1,370 to $1,738, according to InvestingPro data.
The research firm described TransDigm’s fourth-quarter results as "business-as-usual," noting that strong organic growth and margins drove better-than-expected earnings for the fiscal year 2025. TransDigm posted impressive 60.1% gross profit margins and 11.2% revenue growth over the last twelve months.
Stifel characterized TransDigm’s initial fiscal year 2026 outlook as "on the low end of expectations" but viewed the guidance ranges as conservative, consistent with the company’s historical practice of providing cautious forecasts.
The analyst firm stated that following last quarter’s "growth scare," these results should reassure investors that "less has changed than what bears might argue" about the company’s fundamental performance.
Stifel expects acquisitions to be a "meaningful kicker" to TransDigm’s stock performance and believes the company’s "reasonable valuation" makes it worthwhile for investors to maintain positions while waiting for acquisition-driven growth. TransDigm trades at a P/E ratio of 40.3 and has delivered strong returns over the last decade. InvestingPro offers 12 additional tips on TransDigm and comprehensive Pro Research Reports for over 1,400 US equities, providing clear, actionable intelligence for smarter investment decisions.
In other recent news, TransDigm Group Incorporated reported impressive financial results for the fourth quarter of fiscal year 2025. The company surpassed analysts’ expectations with an earnings per share (EPS) of $10.82, which was higher than the forecasted $10.07. This represented a 7.45% surprise for investors. Additionally, TransDigm’s revenue reached $2.44 billion, exceeding the anticipated $2.4 billion. These results highlight the company’s strong performance in the recent quarter. Despite the positive earnings and revenue figures, the stock experienced a slight dip in pre-market trading, indicating a cautious market response. TransDigm’s financial achievements reflect a continuation of its robust operational execution.
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